Amerada Hess Corp. announced Wednesday it has selected The Huntington National Bank to be the exclusive ATM provider for all its convenience store locations in Florida. Huntington will install ATMs in 120 Hess convenience store, primarily in Huntington’s existing markets, by Dec. Huntington has been on an ATM growth binge in Florida for the past three years. Huntington installed its first off-site ATM at the Sheraton Orlando North Hotel in Nov. 1996. Upon completion of the Hess installation, Huntington will offer ATM service at more than 450 locations in Florida. Huntington says it has invested more than $16 million in ATM technology in Florida over the past three years.
BB&T Corporation is offering prepaid phone cards at 450 BB&T 24 automated teller machines across the Carolinas, Virginia, Maryland and Washington, D.C.
The InComm prepaid phone card offers callers a lower per-minute rate than most collect, credit card or hotel long-distance calls.
“Offering convenient, economical phone cards at our ATMs is one more way for BB&T to provide outstanding service through our ATM network,” said BB&T ATM Manager Mark Piper.
“Our prepaid phone cards are ideal for those hectic situations when you need to make long-distance telephone calls on the go, such as vacations, business trips or emergencies. They also make great gifts and they’re perfect for providing a telephone allowance for high school and college students.”
To use the card, callers dial a toll-free number, a personal ID number shown on the card and the number they’re calling. An automated message guides them through the call and tells them how many minutes they have left to use.
Local, long-distance and international calls may be made from any type of touch-tone phone. The cards are available for as little as $3 for 10 minutes. A 30-minute card is $6; a 60-minute card costs $11; and a 120-minute card is $19.
The price of the phone card is automatically deducted from the ATM user’s checking or savings account.
BB&T plans to offer prepaid phone cards at an additional 200 ATMs by the end of the year.
InComm(R) is a division of Atlanta-based U.S. South Communications Inc.
Winston-Salem-based BB&T Corporation, with $41.5 billion in assets, operates 619 banking offices in the Carolinas, Virginia, Maryland, Washington, D.C., Georgia, West Virginia and Kentucky.
Business Week magazine this year rated BB&T Corporation as the second highest performing S&P 500 bank holding company in the nation.
BB&T and its subsidiaries offer full-service commercial and retail banking and additional financial services such as insurance, investments, retail brokerage, leasing and trust. More information is available at the bank’s web site, [http://www.BBandT.com] .
The MBNA machine continues to crank out cold, hard, cash. During the third quarter the nation’s third largest bank credit card issuer entered into 100 new affinity programs and added 3.1 million new accounts. MBNA reported yesterday that net income for the third quarter of 1999 rose 25.9% compared to 3Q/98. Total managed loans grew $2.8 billion during the third quarter to end up at $67.4 billion. MBNA has approx. $2.0 billion in non-card loans and about $5.0 billion in international card receivables, according to CardData (www.carddata.com). Delinquency on total managed loans was 4.67% at Sept. 30, 1999 compared to 4.69% for 3Q/98. Managed charge-offs for the third quarter logged in at 4.34% compared to 4.42% last year. MBNA says 3Q/99 charge volume, which includes purchases and cash advances, tallied up to $27,745,666 compared to $21,953,559 for 3Q/98. The firm’s net interest margin stood at 7.33% for 3Q/99 from 7.55% for 3Q/98. For complete current and historical financials for MBNA visit CardData ([http://www.carddata.com/]).
PERIOD AFFINITY NEW ACCTS NET INCOME
First Quarter 1998 110 1.7 million $149.4 million
Second Quarter 1998 111 2.5 million $172.0 million
Third Quarter 1998 121 2.4 million $216.6 million
Fourth Quarter 1998 133 2.7 million $238.3 million
First Quarter 1999 81 1.7 million* $186.0 million
Second Quarter 1999 99 1.4 million $227.2 million
Third Quarter 1999 100 3.1 million $291.5 million
*excludes 3.3 million accounts from PNC portfolio acquisition and
200,000 accounts from First Virginia portfolio acquisition.
Source: CardData (http://www.carddata.com/) 301-631-9100
M&I Data Services, a leading financial software and services provider, and American Management Systems, Inc. , Fairfax, Va., a leading worldwide provider of customer management consulting, systems integration, and retail credit and decision support systems Monday jointly announced they have signed a strategic alliance agreement. Through this alliance, the two firms are uniquely positioned to provide industry-leading retail credit management consulting and data processing services to a wide spectrum of financial services providers.
The alliance’s services will enable its clients to leverage information to retain and grow customer relationships. Under the terms of the agreement, M&I Data Services will offer, on an outsourced basis, AMS’s fully automated, state-of-the-art credit management solution, CreditLine, complete with Internet capability and sophisticated decision engine. The CreditLine solution consists of AMS’s originations, servicing, and collections offerings — Automated Credit Application Processing System (ACAPS(R)) Enterprise with Credit Xpress, BureauLink(R) Enterprise, Advanced Consumer Lending System (ACLS(R)) Enterprise, and Computer-Assisted Collection System (CACS(R)) Enterprise, as well as the Strata(R)Enterprise decision engine.
This unparalleled offering combines the outsourcing expertise of M&I Data Services with AMS’s industry leadership in credit and customer value management.
“M&I Data Services is excited to enter this alliance with an organization like AMS that furthers our aim of delivering the highest-quality information and data processing services in the industry,” said Greg Schmieding, senior vice president and general manager within the Enterprise Solutions Group, M&I Data Services. “These solutions can shave months off market entry plans, while allowing current providers to speed growth and improve profitability.”
“Given the increasing competition for financial services customers, all providers regardless of size need to focus on what they do best — serving customers,” said Nicholas C. Bradick, AMS vice president and group manager, Consumer Financial Services Group. “The combination of cost-efficient data processing and effective use of information for increased customer value can make a powerful difference in the marketplace.”
Headquartered in Milwaukee, Wis., M&I Data Services is a division of Marshall & Ilsley Corporation (Nasdaq: MRIS), a $22.8 billion holding company. M&I Data Services provides leading-edge technology solutions to the financial services industry, offering consulting, software and processing solutions for financial institutions worldwide.
The company’s rapid growth is being fueled by innovative product development, strategic product acquisitions, and strong growth of its customer relationships. The company had total revenues of $509 million in 1998. For more information visit the M&I Data Services Web site at . AMS’s Consumer Financial Services practice specializes in customer management strategy and technology consulting for large institutions. The firm’s interactive Customer Value Management (iCVM) methodology enables financial services providers to enhance the value of customer relationships by linking customer management strategies with retail delivery execution across all channels.
AMS is a world-class international business and information technology consulting firm. As one of the 20 largest consulting firms worldwide, AMS provides a full range of services and solutions: eCommerce, customer value management, business re-engineering, change management, knowledge management, systems integration, and systems development and implementation. Founded in 1970, AMS is headquartered in Fairfax, Virginia, with over 8,000 employees and 57 offices worldwide. AMS had 1998 revenues of $1.06 billion, with eCommerce- related revenues representing 20%, an increase of almost 150% over 1997. Forbes magazine ranked AMS number 94 out of 400 of the best-performing big companies in the U.S. in their “Best of the Biggest.” AMS can be found on the World Wide Web at amsinc.com .
Transaction Network Services, Inc. announced Friday that it has, through its UK holding company, TNS TransXpress Holding Company (UK) Ltd., acquired Sligos Payment Services (SPS), PLC, currently owned by Paris-based Atos S.A.
The company will now be known as Switchtran (UK) Ltd. and its operations will remain located at its current location in the London area.
Switchtran (UK) Ltd. provides a full range of services to manage Automated Teller Machines (ATMs) throughout the UK. The purchase creates a greater opportunity for TNS to capture the fast-growing dial-up ATM market in the UK. TNS will transfer its dial-up ATM switching platform, which it acquired through its purchase of Suntech Technology in 1998, to Switchtran (UK) Ltd.
In March of 1999, TNS completed the purchase of Atos Ireland Ltd., now Switchtran Limited. Switchtran Ltd. provides ATM processing services for banks and other financial institutions in Ireland. “The acquisition of SPS in the UK is a further step toward the offering of a full-service ATM management and processing platform to customers in both Ireland and the UK,” said TNS president and CEO John J. McDonnell, Jr. “We expect the introduction of dial-up ATM services to proliferate throughout Europe. Our international expansion strategy calls for Switchtran (UK) Ltd. to support that growth.”
“The wave of dial-up ATM placement is energising the UK ATM market,” commented Mark Collins, newly appointed Managing Director of Switchtran (UK) Ltd. “Through the industry expertise of our new colleagues in Welwyn Garden City and the use of the TNS switching platform with its unique transaction network capabilities, TNS will truly be able to provide an end-to-end service to support the UK ATM market, working with all ATM manufacturers.”
Transaction Network Services, Inc. (TNS), headquartered in Reston, Virginia, provides data communications services for transaction-oriented applications. TNS operates subsidiaries in the UK, Ireland, Sweden, France, Germany, Australia, and Japan. The company is listed on the New York Stock Exchange (NYSE) under the symbol TNI. Additional company information is available on the TNS website at [http://www.tnsi.com].
Certain statements and information contained in this news release that are not descriptions of historical fact may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties that could cause actual results to differ materially from those currently anticipated due to a number of factors, including competition, technological changes and changes in government regulation. Accordingly, there can be no assurance that the UK and European markets for electronic payment services will continue to expand and develop or that TNS will be successful in its efforts to penetrate these markets.
The Smart Card Forum, a multi-industry organization working to accelerate the widespread acceptance and application of smart card technology, Tuesday announced that 15 new leading technology companies have joined the growing ranks of the Forum as Principal and Auditing Members. The addition of these newest members contributes to the continued record growth rate the organization has experienced since last fall. The new members include:
* MCI Worldcom – [www.wcom.com] * Oberthur Smart Cards USA – [www.oberthurusa.com] * Wachovia Bank – [www.wachovia.com] Auditing Members:
* Collective Dynamics – [www.coldyn.com] * Dyncom – [www.d-c.com] * Entandem – [www.entandem.com] * K-Vell Consulting – [www.k-vell.com] * LaserCard Systems – [www.lasercard.com] * Logicon – [www.logicon.com] * Maosco – [www.moltus.com] * PaySys International – [www.paysys.com] * Racal Security and Payments – [www.racal.com] * SiVault, Inc. * Litton/TASC – [www.tasc.com] * Litronic – [www.litronic.com] “We are excited to see our 1999-2000 year start off with such a great addition to our member roster,” said SCF President and CEO Donna Farmer. “It is fulfilling to see these security and payment systems innovators participate with our other members in utilizing the wide range of information and resources that are available through the Forum. These new members are joining the nearly 200 companies from many different industries that make up the Forum, which will help us fulfill our goals of advancing smart card technology to have a more prominent role in the Internet economy.”
Each Principal Member is entitled to privileged access to The Smart Card Forum Consumer Research, other Forum sponsored research and documents, along with attendance at the Quarterly Meetings and work groups, Smart Card Forum Educational Institute programs, and the Annual Meetings.
* MCI Worldcom is a global business telecommunications company. Operating in more than 65 countries, the company is a premier provider of facilities-based and fully integrated local, long distance, international and Internet services. The common shares of MCI WorldCom stock trade on the Nasdaq National Market (U.S.) under the symbol WCOM.
* Oberthur Smart Cards USA is the North American division of Oberthur Smart Cards, France’s leading manufacturer of bank cards, Europe’s largest producer (over 80 Million microprocessor cards manufactured to date) and the world leader in micro-processor transaction cards.
* Wachovia Corporation is a leading bank holding company with Wachovia Bank, N.A., its principal subsidiary. At June 30, 1999, Wachovia had
$67 billion in assets and ranked 16th among U.S. banking firms. Additionally, Wachovia had total trust assets of approximately $133.8 billion under administration, including about $41.3 billion under discretionary investment management. Wachovia Bank, N.A. has more than 700 offices and 1,300 ATMs in Florida, Georgia, North Carolina, South Carolina and Virginia. Wachovia also is a leading corporate bank with business relationships in 50 states and global activity in 40 countries.
About The Smart Card Forum
The Smart Card Forum is a non-profit, multi-industry organization of nearly 200 members working to accelerate the widespread acceptance of multiple application smart card technology by bringing together, in an open forum, leading users and technologists from both the public and private sectors. The Smart Card Forum is the leading organization for education and awareness of topical issues associated with the use and adoption of smart card systems. The Smart Card Forum also operates the Smart Card Forum Educational Institute, the industry-leading course dedicated to providing smart card education that has set the standard in the industry. The curriculum is based on leading edge educational models and methodologies utilizing experienced instructors who are experts in the smart card industry. For more information about The Smart Card Forum, log on to the organization’s Web site at [www.smartcardforum.org].
Transaction Network Services, Inc. announced Monday that it has completed the migration to its network of all transaction transport traffic acquired through its acquisition of assets from AT&T’s Transaction Access Service.
While the deal with AT&T was executed September 10, 1998, the actual migration of transactions from the TAS network to the TNS network began at the end of 1998 with the final traffic migrating in early September of this year. As a result, TNS more than doubled its Point-of-Service transaction volumes from about 240 million monthly transactions to over 550 million transactions per month.
“It took us nearly eight years to build out and grow a network capable of handling monthly transaction volumes of 240 million,” commented TNS executive vice president and general manager of TNS’ POS division Brian Bates. “We essentially duplicated that effort for the TAS migration in just under nine months. Our POS business has more than doubled in size in less than a year. We are extremely proud that we’ve been able to achieve such great success in such a short time.”
“We owe a great deal of thanks to all of our employees who worked so diligently to make this transition happen so quickly and smoothly,” added TNS president and CEO John J. McDonnell, Jr. “Their hard work and commitment are directly reflected in the quality service and network performance that make TNS a leader.”
Transaction Network Services, Inc. (TNS), headquartered in Reston, Virginia, provides data communications services for transaction-oriented applications. The company is listed on the New York Stock Exchange (NYSE) under the symbol TNI. Additional company information is available on the TNS website at [http://www.tnsi.com].
Imperial Bank announced Friday that Thomas R. Evans has been named Chairman and CEO of U.S. Audiotex, the leading provider of electronic payment options by credit cards to government entities.
U.S. Audiotex is a San Ramon, Calif.-based firm in which Imperial Bank, the principal subsidiary of Imperial Bancorp, owns an 80% interest. Mr. Evans was previously the President and CEO of GeoCities. He led GeoCities through a $92.4 million IPO in August 1998. GeoCities was subsequently purchased in May 1999 by Yahoo!, Inc. for $5 billion. Mr. Evans left GeoCities shortly after the completion of the merger in June 1999. Prior to his GeoCities tenure, Mr. Evans was President and Publisher of the U.S. News & World Report magazine group, which includes U.S. News & World Report, The Atlantic Monthly and Fast Company.
U.S. Audiotex enables consumers to make electronic payments by credit card to government entities including the United States Internal Revenue Service (IRS), state governments and local municipalities. With U.S. Audiotex’s Internet and telephone systems, consumers can use their credit cards to electronically pay personal, federal and state income taxes, sales and use taxes, property taxes and fines for traffic violations and parking citations. These electronic payments are completed faster and more efficiently than traditional paper-based methods.
Founded in 1996, U.S. Audiotex has existing relationships with the IRS, the state governments of California and New Jersey, the District of Columbia, and over 400 local municipalities. In addition, U.S. Audiotex has existing relationships with major credit card companies including American Express, MasterCard, VISA, and Discover Card, ensuring ease of payment for the consumer.
“This is a great opportunity,” said Mr. Evans. “It is the stated goal of the IRS to have 80% of all tax and information returns filed electronically by the year 2007. With our Internet and telephone conduits, U.S. Audiotex is poised to help make these and other government payment processes more convenient and efficient for the consumer.”
Evans chose the U.S. Audiotex deal for three main reasons. “First,” Evans stated, “the company has an existing business, which is well suited as a foundation for a substantial Internet play. Second, there is a real consumer need for the service: because taxes are an inevitable part of life. And finally, this business model allows for the development of new market applications, the forming of strategic alliances and collaborations with software companies and financial service Internet sites,” Mr. Evans said.
“We pursued and chose Tom Evans because he has a truly unique skill-set and proven leadership acumen,” said George L. Graziadio, Chairman, President and CEO of Imperial Bancorp and Chairman and Co-founder of Imperial Bank. “Tom is highly regarded on Wall Street. He engineered one of the most successful Internet IPOs and mergers in history. He has managed and run large organizations and world-class brands.
“We are convinced that he can attract and lead a team that will allow U.S. Audiotex to execute its business plan,” Mr. Graziadio said. U.S. Audiotex also announced its intention to relocate its corporate headquarters to the New York metropolitan area. A portion of the firm’s operations will remain in California.
About U.S. Audiotex
U.S. Audiotex is the leading provider of electronic payment options to government entities enabling consumers to use their credit cards to pay, through the Internet or telephone, personal federal and state income taxes, sales and use taxes, property taxes and fines for traffic violations and parking citations. Through its interactive voice response (IVR) telephone system, using the toll free number 1-888-2PAY-TAX, consumers make payments and receive certain customer service information. The company has developed a Web site, [www.8882PAYTAX.com], and is working with its existing government clients, including the Internal Revenue Service (IRS), to enable consumers to pay their taxes by credit card over the Internet.
About Imperial Bank
With over $6 billion in assets, Imperial Bank is one of the leading independent business banks headquartered in California and offers a wide range of financial services tailored to corporate customers, entrepreneurs and professionals. Serving mid-sized businesses, Imperial Bank’s strategy focuses on delivering customized financial products and services to manufacturing, distribution, wholesale, service, import/export, apparel and textile businesses; in addition to some of the fastest growing industries such as emerging technology, entertainment, residential construction, and title and escrow.
Founded in 1963 by two California entrepreneurs, Imperial Bank is the principal subsidiary of Imperial Bancorp, with 12 regional banking offices throughout California; in Phoenix, Arizona; and in Denver, Colorado. In addition, Imperial has emerging growth loan offices in Irvine, Los Angeles, Menlo Park and San Diego, California; Boston, Massachusetts; Austin, Texas; Reston, Virginia; and Kirkland, Washington. Imperial can be found on the Web at [www.imperialbank.com].
AboveNet Communications Inc., the architect of a global one-hop network that brings together high-bandwidth content sites, ISPs, and Application Service Providers in centralized co-location facilities, today announced a suite of secure services that are unsurpassed for meeting the physical security requirements of organizations with business-critical Internet assets, and the network security requirements of those using the Internet for highly confidential or sensitive communications and transactions.
Enterprise-class corporations in the financial services, health care, real estate, insurance, and manufacturing industries are demanding these advanced security services, as are many government agencies.
Secure Services build on AboveNet’s core competencies in co-location facilities, Internet connectivity and network services and include: Secure Vault for high level physical security, Secure IP Response for filtered network access, and Secure Connectivity for managed, high-performance low-latency bandwidth.
In a related release, AboveNet also announced today its Secure Alliance Program consisting of “best-of breed” technology providers that extend AboveNet’s open business model and offer additional security solutions.
For most Fortune 500 companies and government agencies, Internet security and reliability remain the major impediments to taking full advantage of the economies offered by Internet technology.
Outsourcing Internet connectivity is attractive to many of these organizations, however they require stringent physical security for their equipment and they want to be able to access their equipment in the same manner they can within their in-house data centers.
AboveNet’s new Secure Services gives these organizations the physical and network security they require plus many of conveniences they would have if they maintained their equipment in-house.
“In designing these three secure services, AboveNet was responding to customer demand for the utmost in physical and network security,” said Sherman Tuan, AboveNet Founder and Chief Executive Officer. “Now, our clients with highly confidential and sensitive information can have the best in security plus the benefit of AboveNet’s superior network and low-latency Internet connectivity, which AboveNet backs with the best service level agreement in the industry.”
“With Secure Services, corporations and agencies handling sensitive, confidential data and transactions can also enjoy the peace of mind that comes with AboveNet’s scalable network and non-stop facilities,” said David Rand, Chief Technology Office and AboveNet Co-founder.
Secure Vaults are high security co-location facilities located within AboveNet’s Internet Service Exchange (ISX) facilities. Secure Vaults clients have 24X7 direct access to their equipment, with facility access managed by round-the-clock security officers, biometric hand scanners and iris scanners, multiple surveillance camera systems, interlocking bullet resistant doors, and shielded, reinforced walls.
The Secure Vault facilities are ISO 9002 certified, and were designed to meet Federal standards for secure data centers. No other major co-location facility has taken such steps to ensure as high a level of security for its clients.
Secure IP Response
Secure IP Response helps protect organizations from disruptive network intrusions and gives them better control over their Internet security. Secure IP response provides router level packet filtering and router level IP blocking of ports, addresses, and protocols predefined by each client.
To further minimize network disruptions, a state-of-the art network monitoring and response system detects intrusions and sets in place pre-defined response procedures.
Secure Connectivity enables VPN solutions with national and global reach by leveraging AboveNet’s superior network and ISP partnerships. Through the equipment and services provided by AboveNet’s Secure Alliance members, Secure Connectivity is able to support up to 300 Mbps of 3-DES encryption.
AboveNet’s secure services are available today at AboveNet’s Vienna, Virginia Internet Service Exchange (ISX) and will be rolled out to AboveNet’s other ISX facilities beginning with the New York ISX facility in October of this year.
About AboveNet Communications Inc.
AboveNet Communications Inc. is a leading provider of Internet connectivity and co-location solutions for high bandwidth and business-critical applications. AboveNet, headquartered in San Jose, is the architect of the Internet Service Exchange (ISX) — a world class network that provides co-location services and Internet connectivity for Content Providers, ISPs and Application Service Providers (ASPs).
The AboveNet Global One-Hop Network is designed to deliver fast, scalable and reliable connections to the Internet and improves the Internet experience for end-users. With its Tier 1 status and ISO 9002 certification, AboveNet is seeking to serve the global community of the Internet. For more information on AboveNet and its service offering call 800/475-2733 or visit the company’s Web site at [www.above.net].
PSINet Inc. confirmed Monday it has entered into a definitive agreement to acquire VA-based Transaction Network Services. The $720 million aggregate purchase price consists of $351 million in cash and up to 7.8 million PSINet common shares. During the second quarter TNI reported revenue of $42.7 million and a net profit of $3.1 million. PSI says the deal will enhance TNI’s market presence by immediately adding 16 global markets for their services.
Home Account, the leading developer of Internet-based financial services, this week announced that its data center has earned the industry-leading ICSA TruSecure certification for the second year in a row. The annual re-certification is part of Home Account’s ongoing effort to increase usage and acceptance of Internet financial services – by both financial institutions and consumers — by ensuring the highest possible security for web-based transactions and information.
Home Account pioneered use of the ICSA certification standard in the financial services industry in May of 1998, when it became the first Internet financial services vendor to obtain certification. In addition to conducting ICSA TruSecure certification annually, Home Account’s data center is continuously monitored to ensure compliance with ICSA’s rigorous security standards.
“As Internet financial services continue to grow exponentially, our commitment to enabling our financial institution clients to offer their customers the most secure services possible grows as well,” said Randy Kahn, Chief Operating Officer of Home Account. “By obtaining annual verification using ICSA’s proven security standards and controls, we are easing customer security and privacy concerns and helping to build broader market acceptance for Internet financial services.”
“Financial services firms now represent 40 percent of ICSA’s customer base, led by Home Account, the forerunner in the trend toward adopting more stringent security standards,” said Peter Tippett, chairman and chief technologist at ICSA. “Today, Home Account continues to be a pioneer in recognizing that protecting customers’ security and privacy requires continuous effort.”
Earlier this year, Home Account announced a program that extends ICSA’s TruSecure certification to client websites for a fraction of the cost of obtaining a complete, independent security audit on their own.
About ICSA, Inc.
ICSA, Inc., a GartnerGroup affiliate, is the world’s source of objective, independent, Internet security services. Through ICSA’s TruSecure(tm) suite of services, businesses are reducing their information security risks and enabling expansion of Internet technology implementation. ICSA has used its leadership and expertise to support the growth of Internet business and commerce worldwide. ICSA headquarters are located in Reston, Virginia. For additional information, visit the ICSA website at [www.icsa.net].
About Home Account
Home Account delivers patent-protected home banking, financial management and electronic commerce solutions to banks, brokerages and other financial service organizations. Home Account’s products include: Canopy Server(tm), an OFX (Open Financial Exchange) financial services platform that allows distribution of services through multiple channels; Canopy Advisor(tm), a strategic financial planning system for use by individuals and financial professionals; Canopy First(tm), a family of outsourced, scalable and brandable Internet products and services for financial institutions, card issuers and brokerages; Canopy Card(tm), innovative Internet account access programs for card issuers; Canopy Business(tm), Internet-based cash management services for business customers; and Canopy Clients(tm), a series of financial management user interfaces.
Nestor, Inc. reported Friday consolidated revenues of $2,747,000 and a net loss of $121,000 ($.01 per share) for the six months ended June 30, 1999, as compared to revenues of $1,482,000 and a net loss after taxes of $1,901,000 ($.16 per share) reported for the six months ended June 30, 1998.
For the second quarter, the Company reported consolidated revenues of $1,306,000, an increase of 137% from $551,000 reported during the same quarter last year. A net loss of $138,000 ($.01 per share) was also reported for the second quarter, an 88% improvement over the net loss of $1,162,000 ($.07 per share) reported in the corresponding quarter of 1998.
Improved results reflect an increase in new licensing revenues realized by the Company’s Financial Solutions Division and its risk-management product line, PRISM(R). Financial Solutions revenues totaled $2,618,000 in the first half of 1999, as compared to $1,205,000 in 1998, and the division reported a net profit from operations of $576,000 for the six months ended June 30, 1999 as compared with a net loss of $382,000 in the same period last year. Revenues for the second quarter included initial license fees from deliveries to four new customers, including the first PRISM licenses in the United Kingdom and South America and the first license of CampaignOne(TM), a customer relationship management solution.
Nestor Traffic Systems, Inc., the Company’s 62.5% owned subsidiary, reported revenues of $101,000 and a net loss before minority interest of $1,079,000 for the six months ended June 30, 1999 as compared to revenues of $208,000 and a net loss of $779,000 in the comparable prior year period. The minority interest in the Company’s traffic systems subsidiary resulted in a reduction of $217,000 in the consolidated loss of the subsidiary for the second quarter and a reduction of $405,000 in the consolidated loss for the six months ended June 30, 1999.
“We are continuing to build upon our direct sales efforts and have realized the benefits of our strong partner relationships. ACI and CSK Corporation have helped us to realize substantial revenue growth and we remain optimistic that the current trend will continue,” said David Fox, Nestor President and CEO. “Our Nestor Traffic Systems subsidiary has also made great strides with its CrossingGuard(R) automated red light enforcement solution. The initial, fully functional installation in Vienna, Virginia is an industry first – using full video to detect, record and issue citations to red light running violators. CrossingGuard brings communities increased red light enforcement and unique collision avoidance features to enhance intersection safety.”
Founded in 1983 and headquartered in Providence, RI, Nestor, Inc. is a leading provider of intelligent decision-support solutions for the financial services industry. Nestor’s client/server products incorporate innovative pattern-recognition technologies ideally suited for data-intensive, mission-critical decision applications in real-time environments. The Company’s products for financial institutions support fraud detection and case management for credit, debit, retail and commercial card fraud, as well as Internet and merchant fraud; bankruptcy prediction; and customer relationship management. Nestor products are sold direct and by selected partners worldwide. Through its subsidiary, Nestor Traffic Systems, Inc., the Company also applies its technologies to a suite of video-based intelligent transportation systems that promote enhanced traffic management and improved safety.